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Mitt Romney Suspends Presidential Campaign; Safety of Experimental Diabetes Treatment is Questioned; John McCain Addresses the CPAC

Aired February 07, 2008 - 15:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

KYRA PHILLIPS, CNN ANCHOR: Where will conservatives turn? Suspense follows Mitt Romney's decision to suspend his campaign for president.
DON LEMON, CNN ANCHOR: Any minute now, John McCain will face the same crowds that treated Romney like royalty. We will hear his speech. And, later, we will talk with senior Romney adviser Bay Buchanan.

Hello, everyone. I'm Don Lemon, live at the CNN World Headquarters in Atlanta.

PHILLIPS: And I'm Kyra Phillips. You're live in the CNN NEWSROOM.

And apparently shortly after Mitt Romney made that speech to the entire nation saying, "If I fight on in my campaign all the way to the convention, I would forestall the launch of a national campaign and make it more likely that Senator Clinton or Obama would win" -- apparently, he made a call to John McCain shortly after he did that speech.

Dana Bash, covering this for us, she was there in the room. She's been with him throughout the entire day.

Is that true? Were the calls made?

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Well, Kyra, what CNN has learned is actually that John McCain made a phone call to Mitt Romney.

We're told by a McCain adviser that he called him and told him that he admired the speech that he gave here that you were talking about just a couple hours ago here to the Conservative Political Action Committee, where he, of course, dropped out the race.

And he said that he told Mitt Romney that he was a -- quote, unquote -- "tough competitor."

Now, McCain also said that he looks forward sitting down with Mitt Romney, we're told, at the earliest opportunity that the two men have, but we're told that John McCain did not explicitly ask Mitt Romney for his endorse.

So, this is a phone call that John McCain made, we are told, just a few minutes after the speech that Mitt Romney gave, essentially trying to reach out to a man who has been his certainly tough competitor . And these two men, as you know, Kyra, have been really going at it in sometimes very personal, very sharp terms over the past couple of weeks, as they have been vying for the nomination.

But now, as Mitt Romney has decided that he is going to suspend his campaign, John McCain reaching out to him. And him doing that sort of sets the tone if you will, for what we're going to see in just a few minutes. And that is John McCain addressing a crowd of conservative activists here in Washington, a convention where he is going to have a lot of work to do.

Don mentioned in the opening here that Mitt Romney was sort of the hero it seems to be when he spoke, when he announced that he was going to drop out of the race. It is going to be a very different kind of reception that John McCain is going to get, and, frankly, one of the most fascinating moments to observe in this race as John McCain comes and tries to make the case that he is the man who he says will be the Republican nominee, and he is the man who is going to have to unite the party.

And the reason it's going to be so interesting is because John McCain has a lot of people inside the conservative movement who simply don't think that he is their man, think that he is, in fact, too liberal to be the person who takes their case to the White House.

So, it's going to be fascinating to watch this speech in just a few moments that John McCain will give, but even more fascinating to see the kind of reaction he gets from the crowd.

PHILLIPS: So, Dana, I guess we got misinformation, then. Romney didn't call McCain. McCain called Romney. And when exactly did that call take place?

BASH: Well, what I'm told by a McCain adviser who called me to tell me about this phone call that McCain made to Mitt Romney was that it happened probably maybe about White House the last hour.

So, John McCain saw what Mitt Romney did here at CPAC.

PHILLIPS: OK.

BASH: He saw the speech he gave. He obviously got the news that John McCain himself is very likely to be the presumptive nominee, although it's important to note that Mike Huckabee is still very much in this race.

John McCain decided to make the call to Mitt Romney and say that he was happy that he was -- that he was a tough competitor, that he respects him and respects the fact that he made this decision to get out of the race -- Kyra.

PHILLIPS: All right, Dana Bash, appreciate it.

LEMON: Reaction now to the Romney decision from CNN contributor Bill Bennett. He joins us now by telephone from Washington. We talked about this, Bill, when John Edwards suspended his campaign. What issues now go on the back burner when it comes to the Republicans now that Romney is out of this race?

BILL BENNETT, CNN CONTRIBUTOR: I think the same issues remain. You're not going to see the emphasis, I suppose, that we saw with Romney in the race on the economic issues.

There will be somewhat less emphasis. But I wouldn't be surprised if Huckabee tried to pick those up and if John McCain does to some extent, too. After all, it is figuring prominently. Neither of those guys is all that -- is all that comfortable with those issues, though, so we will have to wait and see.

If I'm McCain, I look at this thing, Don, and say, I'm going to pick right up on the field where Romney left off.

PHILLIPS: Yes, where he left off. And we heard about this phone call now...

(CROSSTALK)

BENNETT: And talk about the foreign policy stuff.

Go ahead. Sorry.

LEMON: Yes. We heard about this phone call now between the two gentlemen. What might we garner from that? Anything?

BENNETT: Well, First of all, that's a very McCain thing to do. He's a gentleman. He's a gentleman of the Senate. He knows how to act.

He needs the people who are supporting Mitt Romney. I think it's as straightforward as that. Any signal from Mitt Romney that points toward McCain would be helpful. I think he's already sent one, though, in this highlight of the defense issue, the war issue. But, of course, anything more he could do up to an endorsement would be great.

LEMON: Let's look at -- talk about these delegates because, you know, we sort of understand how it works, at least the technical part of it. But then there are so many things up for grabs with it. The numbers show McCain 714, Romney 286, and Huckabee 181. We know that Romney retains those delegates. And then there are some -- a lot of other things in play, super-delegates, or what have you.

But if he comes out and supports either John McCain or Mike Huckabee, it doesn't mean that those delegates will go to either one of those gentlemen.

BENNETT: No, they are free to do what they want to do. They belong to him. But, of course, they will be released. I don't know what the -- what the technicality is there. And so we would see where they -- where they go. Romney has to make a decision as to whether he endorses anybody or not. If he does, I just can't see him endorsing Huckabee, because whatever the bad blood between Romney and McCain, I think it was actually worse between Romney and Huckabee.

LEMON: Yes, and that was my next question. Who do you think he's going to endorse? And most likely it will be -- it will be John McCain, according to you.

But what does this mean for the Republican Party? I mean, it's -- on talk radio, especially Rush Limbaugh and the like, they are really going -- really going after John McCain here. What does this -- does that intensify or will this settle down now that there's just two folks in the race?

BENNETT: I hope it settles down. I'm in the middle of the fight you're describing, Don. I am a conservative. I have a talk radio show, a pretty big one. I have not done this. I haven't endorsed anybody. I have been arguing with a lot of my colleagues in talk radio that I think they're being too hard on McCain.

LEMON: Yes, explain that. Why do you think that? Why are you telling them that?

BENNETT: Because John McCain is not only a war hero. He's a conservative on issues that matter a great deal to conservatives and Republicans.

Yes, he is a heretic on some issues. And they are important. And I disagree with him. But he's very likely to be the nominee of this party. And I think it's important that he not be beat up when we're going to face a big general election.

LEMON: So, you think that will help now? You think your words will help?

BENNETT: I don't know if my words will help. I think Romney dropping out, there will be a day or two where people will gnash their teeth and weep. And then they will have to come to grips with reality.

And I think a lot of people will come around and see that the handwriting is on the wall. Then the question isn't -- the question changes, Don. It's not, who do you like better? who do you want to be president more, Romney or McCain? It's, who do you want to be president more, McCain or Clinton?

LEMON: All right.

BENNETT: That ought to change things.

LEMON: All right, CNN contributor Bill Bennett, thank you.

BENNETT: You bet. Thank you.

PHILLIPS: Republican front-runner John McCain now hoping to do some fence-mending with skeptical conservatives. He's speaking later this hour to the Conservative Political Action Conference in D.C. We will take it live when it happens. Probably will have reaction as well to Mitt Romney and the fact that he is suspending his campaign.

Quite a few conservative leaders and talk show hosts have accused McCain, as you heard right there with Bill Bennett, of being too liberal to get the GOP nomination. And their comments have gotten pretty nasty. McCain says that he is a true conservative. McCain's remaining Republican rivals, Mike Huckabee, Ron Paul, they are also scheduled to address the conservative conference.

Now, for more on Romney's suspended campaign, you can go to CNNPolitics.com. You can also find the latest delegate count and information on upcoming races -- all that and more at CNNPolitics.com.

LEMON: Well, it was a beautiful sight. Can we re-cue that tape? The space shuttle Atlantis on its way to International Space Station. It happened just moments ago, went off without a hitch.

It's been in the air now about 10 minutes, maybe a little bit longer. The space shuttle Atlantis on its way to the International Space Station. Our Miles O'Brien was on top of it, gave some really great analysis there. And every time, your heart just kind of goes into your stomach until everything is all cleared. It's a spectacular sight.

PHILLIPS: Well, CIA Chief Michael Hayden has been casting doubt on the legality of waterboarding today. He's even admitted to using waterboarding three times with three specific -- specific -- can I say it, Kelli Arena? -- al Qaeda operatives. Whew.

Justice correspondent Kelli Arena now to save me from my slurred speech to talk more about what happened today.

(LAUGHTER)

PHILLIPS: Hey, Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: You're in trouble, Kyra, if I have to save you, buddy.

But I think for you to understand what's going on here, we actually have to back up a little bit. Now, earlier this week, the CIA director confirmed for the first time publicly that the agency did waterboard three al Qaeda detainees. And he also said, look, waterboarding is no longer being used.

But what's important is that both the CIA and the White House did not say that waterboarding will never be used again. So, of course, that got everybody in a tizzy. Now, today, we have got a bit of a different spin. CIA Director Michael Hayden admitted that, you know, there are some questions about whether it would be considered legal today.

Here's what he had to say.

(BEGIN VIDEO CLIP) GEN. MICHAEL HAYDEN, CIA DIRECTOR: It's not a technique that I have asked for. It is not included in the current program. And my own view, the view of my lawyers and the Department of Justice, it is not certain that that technique would be considered to be lawful under current statute.

(END VIDEO CLIP)

ARENA: OK, so when it comes about talking whether things are legal or not, we obviously would turn to the attorney general, who also happens to be testifying on the Hill before today the House Judiciary Committee.

Now, he says that for waterboarding to be used again, both the president and the Justice Department would have to approve it based on the circumstances and current law, not exactly what Democrats want to hear, Kyra, or people who oppose this in general. They want the attorney general to come out and say, never, never, never.

He is saying, look, I'm not going to speak hypothetically. I need to get a request in front of me, look at what's happening, look at the circumstances, and then put forth the legal argument. There you go.

PHILLIPS: Yes, and we will follow, of course, the controversy and that argument.

Kelli Arena, thanks.

ARENA: You're welcome, Kyra.

PHILLIPS: Well, he made the phone call. We heard that just moments ago from our Dana Bash, John McCain to Mitt Romney. Now he is about to speak in front the Political Conservative Action Conference in Washington, D.C.

As soon as that happens, gets under way, in just a little bit, we will bring it to you live right here in the CNN NEWSROOM, but John McCain expected to talk about Mitt Romney dropping out of the presidential race.

PHILLIPS: The size and scope of the destruction that straddles five states, where to even begin cleaning, clearing, rebuilding, grieving? Twisters skipped over towns from Arkansas to Kentucky before dawn yesterday, killing at least 56 people and injuring twice that many. The dollar cost is secondary, but, of course, staggering.

The storms transformed the campus of Union University to a mess of debris and ripped up trees.

CNN's Susan Roesgen is now in Jackson, Tennessee, for us -- Susan.

SUSAN ROESGEN, CNN GULF COAST CORRESPONDENT: Kyra, this entire town has been transformed. I talked to the mayor here this morning and he said it's as if the people in Jackson, Tennessee, walk around with bullseyes on their backs. The town has so had so many tornadoes in recent years, that they're used to tornadoes. They prepare for tornadoes. That's the good news. The bad news is, of course, that they can't stop a tornado.

We went to one neighborhood today this morning that was especially hard-hit. These are sturdy, brick colonial homes. Nearly every one in this one particular subdivision was destroyed. In fact, across Jackson, Tennessee, nearly 600 homes were hit by the tornado and nearly 100 were demolished.

The mayor tells me that the damage amounts in his words could be upwards of $70 million just in this one town. And we have some new information, too, today, Kyra, that we want people to know about. We had first reported what the university was telling us, that just a few students, just a handful had only slight injuries yesterday.

It turns out that many more went to the hospital and two are still in critical condition -- Kyra.

PHILLIPS: Susan Roesgen live there from Jackson, Tennessee -- thanks, Susan.

And if the images of the tornadoes have moved you and you would like to help the people affected, you can go to CNN.com and impact your world. Add your name to the growing number of CNN viewers grabbing the opportunity to take action. That's at CNN.com/impact.

LEMON: We want to get you now live to Washington to the Conservative Political Action Conference in D.C. there, John McCain about to step up to the microphone.

As you know, as we have been reporting here on CNN all morning and afternoon, Mitt Romney has dropped out of the race. As we see the folks coming in here, perhaps we will get a time cue to let you know exactly when John McCain is going to step up to the stage.

But, again, Mitt Romney dropping out of the race, and then John McCain calling him soon after in a conversation. You heard our Bill Bennett, our contributor here on CNN, saying that's just the kind of guy he says John McCain is, to make a phone call to one of his rivals, or one of his former rivals. But you see him getting ready there.

As soon as John McCain steps out to the stage to make this speech, we will bring it to you live right here in the CNN NEWSROOM.

PHILLIPS: A sudden surge of doubt over treating diabetes -- an emerging treatment is scrubbed, possibly raising doubts over some traditional treatments.

(COMMERCIAL BREAK)

PHILLIPS: Well, we're getting ready to hear John McCain step up there at the Conservative Political Action Conference in Washington, D.C.

Our Dana Bash reporting to us that within the past hour he actually made a call to Mitt Romney after Mitt Romney stepped up to the mikes and announced that he was suspending his campaign.

We will follow it, of course, as it unfolds. When he steps up to the Mike, we will take it live.

We're going to take a quick break -- more from the CNN NEWSROOM straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: Still waiting for presidential hopeful John McCain to step up to the mikes. We are going to take it live when it happens.

As you know, the big story today, Mitt Romney suspending his presidential campaign. Apparently, John McCain reached out to Romney, called him within the past hour. We are expecting him to make comments about where he is going to take this race now and how he is stepping forward.

We will take it live when it happens.

LEMON: Bewildering news for 21 million Americans with diabetes. Part of a government study had to be halted after too many deaths. That's even though the treatment relied on established wisdom for treating diabetics.

Well, here with more is medical correspondent Elizabeth Cohen on that.

Hi, Elizabeth.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Hi.

You know what? This is so disturbing, because when the doctors devised this study, they said, wow, this could be a great treatment for diabetics. We could be saving lives.

But, instead, it turns out that perhaps lives were lost because of this experimental study. Let's talk a little bit about these numbers. They're pretty disturbing. People in the experiment who were given traditional care, just the standard care that the diabetics get, they saw 203 deaths over the years that the study was conducted.

But folks who got the new treatment, the experimental treatment that was supposed to be better, 257 deaths. So, that is a big difference. That's a 54-person difference. Now, you might wonder, gee, what was this experimental treatment they were getting? Was it a new drug? It wasn't a new drug. It was just a much more intense version of standard therapy.

So, instead of getting one drug for high blood pressure, if they had it, they got several. They got multiple insulin injections. Instead of getting just one cholesterol drug, they would get many and many more drugs and at a higher dosage to lower blood sugar levels.

So, no one really has an explanation for why it happened. The doctors we talked to just said, you know what, clearly, this regimen was just too stressful for these folks with type 2 diabetes.

LEMON: Well, do diabetics out there need to be concerned?

COHEN: You know what? They don't need to be concerned. And here's why. This experimental treatment was done, as you might think, in the course of an experiment. It was only done as part of this study.

So, if you're a type 2 diabetic or your mother or your father, they are not getting this treatment. So, you don't have to worry. It's more of a lesson for doctors than for anything else.

LEMON: So, then, which part of the treatment was causing this particular problem?

COHEN: You know what, they can't figure it out at this point, which is probably a little bit of a problem. And they're going to have to work on that, because they did so many things different. They did different things with cholesterol drugs and blood pressure drugs and insulin drugs.

So, it's going to take a while to tease out exactly which part of it or maybe some of them combined that seems to have caused this problem.

LEMON: All right, thank you very much.

COHEN: Thanks.

LEMON: More on health at CNN.com.

(BUSINESS REPORT)

PHILLIPS: We have just got to get to John McCain at the Political Action Conference in D.C. We're more than likely going to hear his response to Mitt Romney pulling out of the campaign or suspending his campaign this morning.

(JOINED IN PROGRESS)

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: Thank you.

Thank you very much. Thank you. Thank you. How's that? Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you very much. Thank you very much. Thank you. I think -- I think maybe what -- I think maybe what I would like to do and maybe what you would like for me to do is, after what Tom said, just sit down.

(LAUGHTER)

MCCAIN: Thank you, Tom. Thank you. Thank you and George. Thank you very much. And thank you for inviting me. It's been a little while since I have had the honor of addressing you. And I appreciate very much your courtesy to me today. You know, we should do this more often.

(APPLAUSE)

MCCAIN: I hope you will pardon my absence last year, and understand that I intended no personal insult to any of you. I was merely pre- occupied with the business of trying to escape the distinction of pre- season front-runner for the Republican nomination which, I'm sure some of you observed, I managed to do in fairly short order.

But, now, I again have the privilege of that distinction, and this time I would prefer to hold on to it for a little while.

(APPLAUSE)

MCCAIN: I know you were addressed earlier by a great governor, Governor Romney.

(APPLAUSE)

MCCAIN: I had a telephone conversation with Governor Romney. I congratulated him on running an energetic and dedicated campaign. We agreed to sit down together and we agreed on the importance to unite our party. All of you who worked so hard and the support of the millions of people in our party who supported Governor Romney, I congratulate you. You did a fine job.

And you are welcome to join my campaign, and it will be a campaign based on conservative principles in a consequential election about the country's future. I would also like to say a word about our friend Governor Huckabee, a great and fine man...

(APPLAUSE)

MCCAIN: ... who is also -- I also know that he's injected from time to time some much needed humor in the campaign, and I would like to, again, congratulate him as he continues to run a very strong campaign.

And I congratulate him on his success Tuesday night. My friends, I would be honored and deeply humbled to receive the nomination of my party as we continue moving forward in this campaign. My friends...

(APPLAUSE)

MCCAIN: I know I have a responsibility if I am, as I hope to be, the Republican nominee for president, to unite the party and prepare for the great contest in November, and I am acutely aware that I cannot succeed in that endeavor, nor can our party prevail over the challenge we will face from either Senator Clinton or Senator Obama without the support of dedicated conservatives whose convictions, creativity and energy have been indispensable to the success of our party that it has had over the last quarter century. Many... (APPLAUSE)

MCCAIN: Many of you have disagreed strongly with some positions I have taken in recent years. I understand that. I might not agree with it, but I respect it for the principled position it is. And it is my sincere hope that even if you believe I have occasionally erred in my reasoning as a fellow conservative, you will still allow that I have, in many ways important to all of us, maintained the record of a conservative.

Further, I hope you will grant that I have defended many positions we share just as ardently as I have made my case for positions that have provoked your opposition. If not, thank you for the opportunity to make my case today. Thank you.

(APPLAUSE)

MCCAIN: I am proud to be a conservative, and I make that claim because I share with you the most basic of conservative principles: that liberty is a right conferred by our Creator, not by governments, and that...

(APPLAUSE)

MCCAIN: ... and that the proper object of justice and the rule of law in our country is not to aggregate power to the state, but to protect the liberty and property of its citizens. And, like you, I understand, as Edmund Burke observed, that "whenever a separation is made between liberty and justice, neither is safe."

While I have long worked to help grow a public majority of support for Republican candidates and principles, I have also always believed, like you, in the wisdom of Ronald Reagan, who wanted -- and warned, in an address to this conference in 1975 -- he said "a political party cannot be all things to all people. It must represent certain fundamental beliefs which must not be compromised to political expediency or simply to swell its numbers."

I attended my first CPAC conference as the invited guest of Ronald Reagan, and long after I had returned -- not long after I had returned from overseas, when I heard him deliver his "shining city upon a hill" speech.

I was still a naval officer then, but his words inspired and helped form my own political views, just as Ronald Reagan's defense of America's cause in Vietnam and his evident concern for American prisoners of war in that conflict inspired and were a great comfort to those of us who, in my friend Jerry Denton's words, had the honor of serving "our country under difficult circumstances."

I am proud, very proud, to have come to public office as a foot soldier in the Reagan Revolution. And if a few of my positions have raised your concern that I have forgotten my political heritage, I want to assure you, I have not, and I am as proud of that association today as I was then.

(APPLAUSE)

MCCAIN: My record in public office, taken as a whole, is the record of a mainstream conservative. I believe today, as I believed 25 years ago, in small government, fiscal discipline, low taxes, a strong defenses, judges who inform and not make our laws, the social values that are the true source of our strength and, generally, a steadfast defense of our rights to life, liberty and the pursuit of happiness, which I have defended my entire career as God-given to the born and the unborn.

(APPLAUSE)

MCCAIN: These are my beliefs. These are my beliefs and you need not examine only my past votes and speeches to assure yourselves that they are my genuine convictions. You can take added comfort from the positions I have defended during this campaign. I campaigned in Iowa in opposition to agriculture subsidies. I campaigned...

(APPLAUSE)

MCCAIN: I campaigned in New Hampshire against big government- mandated health care and for a free market solution to the problem of unavailable and unaffordable health care.

(APPLAUSE)

MCCAIN: I campaigned in Michigan for the tax incentives and trade policies that will create new and better jobs in that economically troubled state. I campaigned in Florida -- I campaigned in Florida against the National Catastrophic Insurance Fund Bill that passed the House of Representatives.

(APPLAUSE)

MCCAIN: And I defended my opposition to the prescription drug benefit bill that saddled Americans with yet another hugely expensive entitlement program.

(APPLAUSE)

MCCAIN: I have argued to make the Bush tax cuts permanent, to reduce the corporate tax rate ask abolish the AMT that threatens 25 million American families.

(APPLAUSE)

MCCAIN: I have defended my position on protecting our Second Amendment rights, including my votes against waiting periods, bans on the so-called assault weapons and illegitimate lawsuits against targeting gun manufacturers. I have proudly defended my 24-year pro- life record.

(APPLAUSE)

MCCAIN: Throughout this campaign, I have defended the president's brave decision to increase troop levels in Iraq, to execute a long overdue counter-insurgency...

(APPLAUSE)

MCCAIN: ... a long overdue counter-insurgency that has spared us the terrible calamity of losing that war. I hold these positions because I believed they were in the best interests of my party and country. Surely I have held other positions that have not met with widespread agreement from conservatives. I won't pretend otherwise, nor would you permit me to forget it.

(LAUGHTER)

MCCAIN: On the issue of illegal immigration, a position which...

(BOOS AND SOME APPLAUSE)

(APPLAUSE)

MCCAIN: ... a position which obviously still provokes the outspoken opposition of many conservatives, I stood my ground aware that my position would imperil my campaign. I respect your opposition, for I know that the vast majority of critics to the bill based their opposition in a principled defense of the rule of law. While I and other Republican supporters of the bill were genuine in our intention to restore control of our borders, we failed, for various and understandable reasons, to convince Americans that were. I accept that. And I have pledged that it would be among my highest priorities to secure our borders first. To secure our borders first.

(APPLAUSE)

MCCAIN: And only after we have achieved widespread consensus that our borders are secure would we address other aspects of the problem in a way that defends the rule of law and does not encourage another wave of illegal immigration. My friends...

(APPLAUSE)

MCCAIN: ... all I ask of any American conservative, moderate Independent or enlightened Democrat is to judge my record as a whole and accept that I am not in the habit of making promises to my country that I do not intend to keep.

(APPLAUSE)

MCCAIN: I hope I have proven that in my life -- even to my critics -- then vote for or against me based on that record, my qualifications for the office and the direction where I plainly state I intend to lead our country. If I am so fortunate as to be the Republican nominee for president, I will offer Americans, in what will be a very challenging and spirited contest, a clearly conservative approach to governing. I will make my case...

(APPLAUSE)

MCCAIN: I will make my case to voters no matter what state they reside in the same way. I will not obscure my positions from voters who I fear might not share them. I will stand on my convictions -- my conservative convictions -- and trust in the good sense of the voters and in my confidence that conservative principles still appeal to a majority of Americans Republicans, Independents and Reagan Democrats.

(APPLAUSE)

MCCAIN: I know -- I know that you know that often elections in this country are fought within margins of small differences. This one will not be. We are arguing about hugely consequential things.

Whoever the Democrat nominee is, they would govern a country in this way that will, in my opinion, take this country backward to the days when government felt empowered to take from us our freedom, to decide for ourselves the course and quality of our lives, to substitute the muddled judgment of large and expanding federal bureaucracies for common sense and values of the American people. To the timidity and wishful thinking of a time when we averted our eyes from terrible threats to our security that were so plainly gathering strength abroad.

It's shameful and dangerous that Senate Democrats are blocking an extension of surveillance powers that enable our intelligence and law enforcement to defend our country...

(APPLAUSE)

MCCAIN: ... to defend our country against radical Islamic extremists. My friends, this election is going to be about big things, not small things. And I intend to fight as hard as I can to assure that our principles prevail over theirs. Senator Clinton and Senator Obama want to increase the size of the federal government. I intend to reduce it. I will not...

(APPLAUSE)

MCCAIN: My friends, I will not sign a bill with earmarks in it -- any earmarks in it.

(APPLAUSE)

MCCAIN: And I can assure you Senator Coburn will hold me to it.

(LAUGHTER)

MCCAIN: I will fight for the line item veto and I will not permit any expansion whatsoever of the entitlement programs that are bankrupting us. I will not. I will not. On the contrary...

(APPLAUSE)

MCCAIN: On the contrary, I intend to reform those programs so that government is no longer in that habit of making promises to Americans it does not have the means to keep.

(APPLAUSE)

MCCAIN: Senator Clinton and Senator Obama will raise your taxes. I intend to cut them. I will start by making the Bush tax cuts permanent.

(APPLAUSE)

MCCAIN: I will cut corporate tax rates from 35 percent to 25 percent to keep industries and jobs in this country.

(APPLAUSE)

MCCAIN: I will end -- I will end the alternative minimum tax and I won't let a Democratic Congress raise your taxes and choke the growth of our economy.

(APPLAUSE)

MCCAIN: They will offer a big government solution to health care insurance coverage. I intend to address the problem with free market solutions and with respect for the freedom of individuals to make important choices for themselves. They will...

(APPLAUSE)

MCCAIN: ... they will appoint to the federal bench judges who are intent on achieving political changes that the American people cannot be convinced to accept through the election of their representatives. I intend to nominate judges who have proven themselves worthy of our trust, that they take as their sole responsibility the enforcement of laws made by the people's elected representatives.

(APPLAUSE)

MCCAIN: Judges of the character and quality of Justices Roberts and Alito -- justices who can be relied upon to respect the values of the peoples whose rights, laws and property they are sworn to defend. Senator...

(APPLAUSE)

MCCAIN: Senator Clinton and Senator Obama will withdraw our forces from Iraq based on an arbitrary timetable designed for the sake of political expediency and which recklessly ignores the profound human calamity and dire threats to our security that would ensue. I...

(APPLAUSE)

MCCAIN: I intend to win the war and trust in the proven judgment of our commanders there and the courage and selflessness of the Americans they have the honor to command.

(APPLAUSE)

MCCAIN: My friends, we share the grief over the terrible losses we've suffered in the prosecution of this war. There is no other candidate for this office who appreciates more than I do just how awful war is. But I know that the costs in lives and treasure we would incur should we fail in Iraq would be far greater than the heartbreaking losses we have suffered to date and I will not allow that to happen.

(APPLAUSE)

MCCAIN: Those senators won't recognize and seriously address the threat posed by an Iran with nuclear ambitions to our ally, Israel, in the region. I intend...

(APPLAUSE)

MCCAIN: ... I intend to make unmistakably clear to Iran we will not permit a government that espouses the destruction of the State of Israel as its fondest wish and pledges undying enmity to the United States to possess the weapons to advance their malevolent ambitions.

(APPLAUSE)

MCCAIN: Senator Clinton and Senator Obama will concede to our critics that our own actions to defend against its threats are responsible for fomenting the terrible evil of radical Islamic extremism and the resolve to combat it will be as flawed as their judgment. I intend -- I intend to defeat the threat by staying on offense and by marshalling every relevant agency of our government and our allies in the urgent necessity of defending the values, virtues and security of free people against those who despise all that is good about us.

Those are but a few of the differences that will define this election. They are very significant differences and I promise you, I intend to contest these issues on conservative grounds and fight as hard as I can to defend the principles and positions we share and to keep this country safe, proud, prosperous and free.

(APPLAUSE)

MCCAIN: We've -- we have had a few disagreements and none of us will pretend that we won't continue to have a few. But even in disagreement -- especially in disagreement -- I will seek the counsel of my fellow conservatives. If I am convinced my judgment is in error, I will correct it. And if I stand by my position, even after benefit of your counsel, I hope you will not lose sight of the far more numerous occasions when we are in accord.

I began my comments today to you by assuring you that we share a conception of liberty that is the bedrock of our beliefs as conservatives. As you know, I was deprived of liberty for a time in my life. And while my love of liberty is no greater than yours, you can be confident that mine is the equal of any American's. It is a deep and unwavering love. My life experiences and service to our country inform my political judgments. They are at the core of my convictions. I am pro-life and an advocate for the rights of man everywhere in the world because of them, because I know that to be denied liberty is an offense to nature and nature's creator.

I will never waver in that conviction. I promise you, I know in this country our liberty will not be seized in a political revolution or by a totalitarian government, but rather, as Burke warned, it can be nibbled away for expedience and by parts. I am alert to that risk and will defend against it and take comfort from the knowledge that I will be encouraged in that defense by my fellow conservatives.

You've heard me say before that for all my reputation as a maverick, I have only found true happiness in serving a cause greater than my self-interests. For me, that cause has always been our country and the ideals that have made us great. I have been her imperfect servant for many years and I've made many mistakes. You can attest to that -- but need not. But need not.

(LAUGHTER)

MCCAIN: For I know them well myself. But I love her deeply and I will never, never tire of the honor of serving her. I cannot do that without your counsel and support. And I am grateful -- very grateful -- that you have given me this opportunity to ask for it. Thank you and God bless you.

(APPLAUSE)

LEMON: Senator John McCain finishing up a speech there in front of the Conservative Political Action Conference in Washington, D.C. -- definitely in front of a very receptive audience.

It's been a big day for Republicans. Mitt Romney speaking in front of that same venue just -- no more than two or three hours ago, backing out of the race. John McCain there mentioning his service to the country. He's not perfect, he said. He's made mistakes and certainly the people there can -- are a testament to that. But, again, John McCain speaking in front of that committee.

We're going to speak to Bay Buchanan, who is a senior adviser to Mitt Romney, in just a little bit, to get her reaction on this.

Hello, Bay. Wave to our audience. We'll see you on the other side of the break.

(COMMERCIAL BREAK)

PHILLIPS: Mitt Romney vowed he'd stay in the race for president "all the way to the Republican convention." Well, he changed his mind. Romney says he is suspending his campaign. He broke the news to the Conservative Political Action Conference in Washington here in the NEWSROOM.

(BEGIN VIDEO CLIP)

ROMNEY: ... this race because I love America. And because I love America, in this time of war, I feel I have to now stand aside for our party and for our country.

(END VIDEO CLIP)

PHILLIPS: Joining us now from Washington, Bay Buchanan, senior adviser to the Romney campaign.

Bay, you got out of the conference with Romney and conservative leaders. What happened?

BAY BUCHANAN, ROMNEY CAMPAIGN SENIOR ADVISER: Well, there's no question that we -- we really have done something in this campaign -- in this primary. We didn't win the nomination, but I'll tell you something, the conservatives, the leaders that I spoke today and those across the country should be very, very pleased because the conservative movement has an extraordinarily powerful and strong leader in Mitt Romney. And he is just very inspiring to those that speak to. It is remarkable and it has really moved to us recognize he fought for the heart and soul of the party. And I've got to tell you something, he captured it.

PHILLIPS: But what's he going to do? Is he going to resurface? Is he going to endorse somebody? Is he going to think about a vice presidential ticket? What's going on?

BUCHANAN: I think what we're doing here is it's now he recognizes it's McCain. McCain's got to pull this thing together. And if McCain wants the conservatives to follow him, they are going to have to show some respect for our leader, Mitt Romney. We expect, of course, that he has earned a spot in that convention -- a prime time speaking spot. And we expect him to reach out to conservatives because McCain -- John McCain cannot convince conservatives around the country to move toward him unless he gets the leaders of our movement to start speaking on his behalf.

PHILLIPS: Well, Bay, have you advised Romney to endorse McCain?

BUCHANAN: I think what Mitt Romney is doing here is he's taking a look at everything. It's a big step today -- a huge step to make this decision, obviously, for the best interests, as he believes and as he said, for this nation, for our party and for our movement.

Now, I believe sincerely that he will endorse the nominee of our party. The timing, of course, is something that will have to be looked at and we'll have to see who the nominee is. He believes, as I do, it will be John McCain. Most people do. But we do still have a primary.

PHILLIPS: OK. So you think he's going to step up and endorse John McCain?

BUCHANAN: I think the proper time, if John McCain becomes the nominee I think you will see an endorsement. Yes, I expect that.

PHILLIPS: So what happened with Mitt Romney? Bill Bennett, a conservative analyst, came on our air today and said he just didn't connect with the American people, he flip-flopped on his message and he lost it.

BUCHANAN: No, I couldn't disagree with you more. I've got to tell you, I've been working now with Mitt Romney a couple of months. He really is somebody that does connect, that does touch us. You can see conservatives everywhere -- the talk show hosts, who really have been the backbone of our movement in the past several years, since we did lack a leader. They have all moved with Mitt Romney. They recognize he is the conservative. As Laura Ingraham said, he's the conservative of the conservatives.

So Bill Bennett is completely wrong on that. We see him as our future leader. We see something happening here and we're very, very excited about that -- very disheartened that weren't able to win the nomination for him, because we knew that he would be a terrific, terrific president.

PHILLIPS: You know, $35 million in personal donations -- what went wrong with the highly financed campaign?

BUCHANAN: Well, I'll tell you a couple of things. And, of course, this is yesterday's news. But Mitt Romney could have beat either of the other two candidates. They two-teamed him so he was never able to get in a one-to-one, a two-man race here. And so -- I can tell you now, though, John McCain or Huckabee -- neither of them could win a one-on-one against Mitt Romney. He would have beat them both. But the two-teaming work, that was their strategy, they pulled it off and now we'll see what happens as we go forward.

PHILLIPS: And McCain said he's going to sit down and talk with Romney and they're going to discuss what's next for uniting the party.

Bay Buchanan, senior adviser to Mitt Romney, thanks for joining us.

BUCHANAN: Thank you very much.

PHILLIPS: All right.

For more on Romney's suspended campaign, you can go to CNNPolitics.com. You can also find the latest delegate count and information on upcoming races -- and all and more at CNNPolitics.com.

The closing bell and a wrap of the action on Wall Street is straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: The closing bell is about to ring on Wall Street.

LEMON: Susan Lisovicz is standing by with a final look at the trading day.

Hello, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: I don't feel neglected. You guys had a lot of business to conduct. And so I just...

LEMON: Did we talk to you once today? Twice?

LISOVICZ: Once.

(LAUGHTER)

LEMON: Oh my gosh.

LISOVICZ: And I was accused of taking too long. But I totally understand. I don't take it personally.

(STOCK MARKET REPORT)

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